Correlation Between China Resources and Hainan Haiqi
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By analyzing existing cross correlation between China Resources Boya and Hainan Haiqi Transportation, you can compare the effects of market volatilities on China Resources and Hainan Haiqi and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in China Resources with a short position of Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Resources and Hainan Haiqi.
Diversification Opportunities for China Resources and Hainan Haiqi
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Hainan is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding China Resources Boya and Hainan Haiqi Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Haiqi Transpo and China Resources is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on China Resources Boya are associated (or correlated) with Hainan Haiqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Haiqi Transpo has no effect on the direction of China Resources i.e., China Resources and Hainan Haiqi go up and down completely randomly.
Pair Corralation between China Resources and Hainan Haiqi
Assuming the 90 days trading horizon China Resources Boya is expected to generate 0.68 times more return on investment than Hainan Haiqi. However, China Resources Boya is 1.46 times less risky than Hainan Haiqi. It trades about 0.0 of its potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about 0.0 per unit of risk. If you would invest 3,097 in China Resources Boya on September 1, 2024 and sell it today you would lose (17.00) from holding China Resources Boya or give up 0.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Resources Boya vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| China Resources Boya |
| Hainan Haiqi Transpo |
China Resources and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Resources and Hainan Haiqi
The main advantage of trading using opposite China Resources and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Resources position performs unexpectedly, Hainan Haiqi can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hainan Haiqi will offset losses from the drop in Hainan Haiqi's long position.| China Resources vs. Zijin Mining Group | China Resources vs. Invengo Information Technology | China Resources vs. Emdoor Information Co | China Resources vs. Hainan Mining Co |
| Hainan Haiqi vs. Nanjing Putian Telecommunications | Hainan Haiqi vs. Shenzhen Hifuture Electric | Hainan Haiqi vs. Tianjin Realty Development | Hainan Haiqi vs. Shenyang Huitian Thermal |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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